$13k O% Balance Transfer from Capital One Credit Card


Well I bit again. Back in June I signed up for a 0% balance transfer from CitiCard for $26.5k, now I signed up for a $13k 0% balance transfer from Capital One.

Since I no longer have any major financing moves in my immediate future (no plans to buy another property), I went ahead and put my credit score back to work by applying for a new credit card, taking the 0% balance transfer offer, and moving the cash to my HSBC Internet Savings Account to earn 5.05% APY.

This time I used 2 different techniques to extract the balance transfer from the new credit card.

When I applied for the credit card I requested a $10k balance transfer to my Wachovia Ready Reserve (basically a line of credit acct) account. Then I transferred the money from my reserve account to my checking account, and finally to my savings account.

When I received the actual credit card, the mailing included a "purchase check" that could be used for balance transfers with no transaction fee. So I wrote the check to myself for the remaining credit, deposited the check into my checking account and then moved the cash to my savings account.

For future reference, I found it less hassle to transfer using the purchase check so I will opt for using the check in the future rather than transferring it to my line of credit account.

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Comments (12)


DATE: 4:42 PM
Isn't free money addicting? I loved those citi-card offers. You should get your fiancee to sign up for some of them as well. Those $100 gift cards come in handy.

DATE: 5:01 PM
Does this affect your credit any?!!I wnat to do it but don't want to negatively affect my credit

DATE: 7:51 PM
I'm suprised a "purchase" check can be used for balance transfers. You're sure that the fine print allowed for BT's?Matthew @ Crazy Money

DATE: 12:03 AM
I recently got a Chase check for 0% through August 2007. They send me these all the time. I plan to take advantage of this, probably drawing to my maximum line which is approximately 35k. Fee is $100.

DATE: 4:03 PM
I found the Citi American Express Dividend card to be the easiest balance transfer. They just sent me a check in the mail!!!Obsessedwithmoneywww.obsessedwithmoney.blogspot.com

Be careful with those BT checks and read the fine print. AmEx has wised up, adding language saying that if you make a promotional rate payable to "you", "your company" or "a brokerage company", then you've voided the promotion and the check is no longer a BT, it's considered a cash advance. I woudn't be surprised, esp. with the BOA/AmEx alliance, if other CC companies pick this up.


Greg

Interesting hadn't heard of that. So far so good, but I will make sure I double check for this type of fine print.

can I ask you a question?
do you usually balance transfer maximum credit line,
or just 90% of the credit line?

I usually transfer as much as they let me. Great point though - the credit scores are typically dinged when you have >75% and >90% of you credit line outstanding. Remember you usually have to make a minimum monthly payment that is 2-3% of the balance so it only take a few months for you balance to drop below 90% of your credit limit

do you happen to have a llink to apply for the capital one card with 0% balance transfer? thanks.

Need some Help.....I owe $7k on my Citi card and are tired of paying the interest. If I apply for a 0% for 12 month and transfer my balance to this card, the idea is to take the max out say $15k take the difference, $8k and put in a ING account to collect interest, and what do I when the 12 month period is up is my only question?

Read this balance transfer guide for more info, but the net is that you take the money from your savings account and pay off the balance before the 0% APR expires. The net is you will be able to earn interest on the money in teh savings account, but it shouldn't cost you any interest - you pocket the difference.

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